19th CONGRESS, 1st DUTY ON SALT. Duty on Salt. Report of the Committee on Agriculture, in the Senate, made March 17, 1826. Mr. WOODBURY, from the Committee on Agriculture, made the following report: That this important branch of our national industry, is now compelled to sustain one burthen, very severe and partial in its operation. It is the duty imposed upon imported salt; a duty which, at the rate of twenty cents on each bushel weighing fifty-six pounds, is almost unexampled in amount, as it sometimes equals three hundred per cent. on the prime cost of the article. Because, while the weight of some salt per bushel, does not exceed sixty pounds, that of other species is high as eighty-four pounds, and is frequently purchased abroad at ten cents per bushel. So enormous an impost, not on a luxury, but on an article of the first necessity, falls, also, in a great measure, upon the agricultural interest. Because, whether salt be employed as a dressing for the soil, in the manufacture of butter and cheese, in the preservation of beef and pork, in the fodder to sheep and cattle, or in the various other ordinary uses of it, the tax comes, in the first instance, and in most of these particulars, exclusively from our farmers; and, in the end, probably more than five-sixths of it is paid by them, as the purchasers of it, without subsequent remuneration, by any enhanced price of their commodities, and as the greatest consumers of all agricultural products. Your committee have searched in vain for a justification of the continuance of a burthen thus severe and partial. Because, though Congress possess the power to lay imposts," for the purpose of paying "the debts, and providing for the common defence and general welfare of the United States;" yet, the Constitution declares that these imposts shall be "uniform throughout the United States," and care has, in general, been exercised, to make them uniform in their operation, as well as amount, and to lessen their amount wherever and whenever the exigencies of the country will permit it. The first tax upon imported salt, in July, A. D. 1789, of only six cents per bushel, was declared to have for its two principal objects, "the support of Government, and the discharge of the debts of the U. States." [Senate. increased, by graduating the duty on the bushel wei ing only fifty-six pounds. But it was expressly limited to one year after the close of the war; and, in April, A. D 1816, would probably not have been retained, had our debt become swollen to the alarming sum of an than one hundred and twenty millions. Now, however, all the apologies for this tax, whee original or subsequent, seem to have ceased. The tional debt is reduced to about its first amount; and revenue from other sources, to meet our current exper and to discharge this debt, have increased nearly for fold. Although these expenses have also increased, in the last nine years, we have had not only ample res meet them, but to pay off more than forty millions of t debt. The whole impost on salt, within that period, has ad in this financial operation, only about five millions; its present annual amount, of about $650,000, appezni us not to be needed, either for the support of Governer. or the gradual discharge of the public debt. While its tinuance, operating now principally on the Eastern detr ity of the Allegany Ridge, becomes a tax so severe and s partial, on only a single and indispensable artick, s average, in that region, from one to two dollars per yea in the family of almost every agriculturist. What is s further objectionable, an undue portion of this tax, even among agriculturists, fall upon the middling and poore classes. If it could be imagined, that such a burthen was ever imposed with a view to encourage the domest manufacture of salt, the only apology now let fe ing it, a sufficient answer would be found in the sh we have given of the periods, occasions, and m imposing and repealing it. Still further, might an be found, in the fact, that, notwithstanding the d salt, its manufacture on the seaboard has declined, than increased, and, in the interior, has flourished ni from the duty, but from the small cost of the prair of the article, and the great expense of its transp It can be made in the interior, at a price from fifte fifty cents per bushel; and a duty of twenty cents not pay its freight by land, much beyond that nun miles. But what is decisive, as to the uselessness exorbitant and unparalleled duty in a protecting vics. as to lessen the consumption of foreign salt, appos the records of the Treasury, in the fact, that the With a national debt of almost eighty million, and a re-sumption of it has kept up to more than three săvenue of only about six million, there might then have bushels per annum. In A. D. 1823, it was 14 existed a sufficient apology for so small a duty on a foreign bushels. The amount of revenue on this article, 2 t article, whose use, at that time, was so uniform in different periods, shows that the consumption of importat » ent parts of the Union as to render the burthen not very unequal. In August, A. D. 1790, the same objects induced Congress to increase the duty to twelve cents per bushel. In July, A. D. 1797, the reasons for it became strengthened by our foreign difficulties, and our augmented expenses. But, while these last furnished an argument to raise the duty still higher, to twenty cents per bushel, public complaint and apprehension were, in some degree, quieted, by limiting the duty to a period short of three years. In May, A. D. 1800, the time was farther extended to ten years; but, ere it expired, and soon as our revenues from other sources had become adequate to our annual expenses, and to a gradual reduction of the national debt, Congress interposed, with parental watchfulness, over the first great interest of society, and, in December, A. D. 1807, put an end entirely to this invidious burthen. Imported salt afterwards remained free from duty, till July, A. D. 1813. Then, as in former periods, between A. D. 1788, and A. D. 1801, our ordinary resources, by means of commercial embarrassment and war, were found altogether insufficient to meet the wants of Government, and, among other extraordinary burthens, the tax of twenty cents per bushel upon salt was revived, and, indeed, has increased, rather than diminished, or remained f The tax, therefore, appears to your committee, in e point of view, injudicious; and they entertain an qu that the interests of agriculture, and the true pa the Government, require a speedy attention to the tion of it. Under this impression, they recommend the ade of the accompanying resolution: Resolved, That the Committee on Finance be inst ed to report a bill, providing for a repeal of the day imported salt, in a manner gradual, or immediat, their opinion, either mode may be preferable, come the estimates and probable revenue of the cure Report of the Committee on Commerce, in the Scnila, ~' March 31st, 1826. Mr. LLOYD, from the Committee on Commerce, t was referred the Memorial of the Merchant Owners, and Manufacturers, of the City of Balti made the following report: The memorialists state: "Thet Great Britain has "lately opened the trade of her North Amen Senate.] Discriminating Duties. S19th CONGRESS, 1st SESSION. "West India Colonies, insomuch that not only are almost izing the President, on satisfactory evidence being given " all articles admitted, but the trade of those colonies is to him that the British colonial ports were opened to the “accessible to all parts of the world, on far more favora-vessels of the United States, to issue his proclamation, declaring the ports of the United States opened to British vessels employed in that trade. "ble terms than those now enjoyed by merchants of the "United States :" "They, therefore, submit the proprie"ty of abolishing the discriminating duties of ninety-six "cents per ton, on British colonial vessels, and of ten per "cent. additional on the duties on their cargoes, and of "admitting British vessels, from whatever ports, on the "same terms as the vessels of the most favored nations." And, in consequence of an act of Parliament, of June 24th, 1822, admitting vessels of the United States into certain enumerated ports in the British colonies, still another law of Congress was passed, March 1st, 1823, by which the ports of the United States were opened for vesIn reference to which, the committee remark: That, by sels arriving therein from the said enumerated British the existing laws of the United States, a duty of fifty cents ports, and from all others which were, or might be, openper ton, as a tonnage duty, and fifty cents per ton, as lighted thereafter, to the vessels of the United States; and the money, is imposed on all foreign vessels entering the ports President was authorized to equalize the duties on such of the United States, with an addition of ten per centum British vessels and their cargoes, on proof being given to on the amount of duties on the cargoes of all such vessels him that no other, or higher, rate of tonnage or impost, as belong to foreign Powers, who do not admit the vessels and no other charges of any kind, were levied or exacted, of the United States into their ports on the same terms as in the said British ports, on United States vessels, than their own vessels: that a Convention is now in operation were paid by British vessels and merchandise, imported between the United States and Great Britain, whereby the into the said colonial ports, from elsewhere than the Unitduties on the vessels and cargoes of the respective parties, ed States. so far as regards the commerce between the United States and the territories of Great Britain, in Europe, are equalized; but that the provisions of this Convention do not extend to the British colonial possessions in America; in consequence of which, British vessels, arriving in the United States from those colonies, pay the discriminating duties before mentioned, amounting, on the vessel, to one dollar per ton of its admeasurement; while vessels belonging to the United States, pay only six cents per ton, on entering our own ports; but that these vessels, entering | British colonial ports, are subject to a countervailing duty of four shillings and three pence sterling, per ton, equal to ninety-four cents, being the difference in favor of American over British vessels, from the colonies, entering the ports of the United States. This distinction it has long been the earnest desire of the Government of the United States to annul, on the principle of a just reciprocity; but, although much discussion has been had on the subject, and many laws have been enacted in reference to it, by both parties, the desired result has not yet been accomplished. By an act of Congress, of March 3d, 1815, the discriminating duties on vessels and merchandise, were proffered to be repealed in favor of any foreign nation which should, on its part, reciprocate the same provisions of law towards the United States. Since which time, several acts of Parliament have been passed, having especial or incidental reference to the trade with the British American colonies; and under which, and the laws of the United States before recited, a commercial intercourse was opened, and has been prosecuted, between the United States and certain British colonial ports; but to an extent not equal to the expectations that have been formed respecting it, nor, as it is contended, on terms of equality; the want of which having given rise to discussions, if not to a dissatisfaction, between the parties engaged in it, it may be useful briefly to advert to. On the part of the American Government, it is alleged, that a just reciprocity does not exist, inasmuch as the duties on American vessels and their cargoes, arriving at British colonial ports, are required to be discharged by an immediate prompt payment, and frequently at a great sacrifice to acquire the means of doing it, while a credit is given for the duties payable on British vessels and their cargoes, arriving in the United States from the colonies, of six and nine months; that bonds, with sureties, are required for the landing of the return cargo in a specified port in the United States, which are occasionally obtained with great difficulty, by the owners or masters of the smaller American vessels engaged in the trade; that an export duty of two per cent. is imposed on the return cargo, which cannot be countervailed in the United States; that vessels, arriving at a bad market, have, at times, not been allowed to seek a better, unless by a double payment of duties, while British vessels from the West Indies, seeking a favorable sale for their cargoes, may run along the whole coast of the United States, from NewOrleans to Eastport; that onerous and heavy duties, and colonial fees, are exacted, amounting, as is stated, in some instances, on small lumber loaded vessels, to the value of the cargo; the latter of which is corroborated, in a degree, by Mr. Huskisson, in his speech in Parliament, in March, of the last year, in which he mentions the liability to abuse, and vexation of the practices in this particular; and states that, in many instances, the fees alone, which In May, 1820, the act of April, 1818, was extended so are exacted upon a ship and cargo, amount to much more as to embrace, and exclude from the ports of the United than all the public duties; and that an important discrim:States, British vessels arriving from ports in Lower Cana-nating duty is imposed, in the West India markets, on the da, Nova Scotia, New Brunswick, Newfoundland, and all flour, the bread stuffs, and the lumber, of the United ports under the dominion of Great Britain in the West In-States, over that which is paid on the same articles, when dies, and on the continent of America, which, from having been occasionally opened, were not considered as included in the act of April, 1818. By the Conventions of 1815 and 1818, this was done, between the United States and the territories of Great Britain in Europe: and a reciprocal liberty of commerce was established between them, for the period of ten years from the last mentioned date. This, however, produced no adequate relaxation of the British system in relation to her colonies, from which vessels of the United States continued to be excluded; in consequence, a due degree of self-respect, on the part of the United States, gave rise to the passing of an act, in April, 1818, by which the ports of the United States were closed to British vessels arriving from a port or place in any British Territory, to which vessels, owned by citizens of the United States, were not admitted. received from Canada, Nova Scotia, and New Brunswick, and which, amounting in many instances to a full freight, gives a decisive advantage to importations from the latter. But to enable the Government of the United States, And although it is to be admitted, that some of these consistent in its principles, and always ready to verify its regulations are of a character so municipal, as not to be leprofessions, to meet the overtures of any foreign nations gitimate objects of complaint, in reference to an internaon equal terms, in May, 1822, an act was passed, author-tional intercourse; yet they nevertheless do, in fact, con travene that just reciprocity, on which it was to be presumed it would be the desire of both parties to place the trade between them. [Senate. to the numerous acts which have been passed in relation to it, during the last ten years, both by the United States and by Great Britain, evidence will at once be furnished While the British Government, on its part, contends, as of the complexity of the interests connected with it, of the is understood, that it is justified in requiring an abrogation difficulty satisfactorily to arrange them, and especially of of the discriminating duties, in consequence of its having the inefficacy of isolated legislation for the attainment of partially opened its colonial ports, for the importation of this international object; and also affording, as the coma limited number of articles from the United States; and mittee cannot but believe, a strong ground of preference that it has a right to make any municipal or local regula- for an arrangement being effected, if practicable, by 1 tions it pleases; and among others, that of admitting, free convention between the two Governments, on a just and of duty, the produce of its colonies, however remotely si- liberal basis, which, when agreed to, would be permanent tuated, while it imposes an impost on articles of the same and unalterable for the term of its duration, rather than description from other countries: but allowing some plau- to rely on detached, independent, substantive acts of le sibility to this reasoning, it is to be recollected, that the gislation, which, however well intended, are sometimes question at issue between the two countries is not so much ambiguous, and liable to misconstruction by those who one of abstract right, as of equality and reciprocity in en-are called to administer them, and, at all times, subject to tering into a commercial arrangement intended to pro- revocation by the parties enacting them. mote the mutual advantage of both parties. The foregoing presents a brief synopsis of the measures which have been adopted since the year 1815, by the United States and Great Britain, relative to the trade with the British colonies, and of the present state of it. Of the inconvenience and inexpediency of substituting which, the memorialists themselves furnish a strong proof in point, by the statement they make in their memorial, of the British ports of Halifax, in Nova Scotia, and St. John's, in New Brunswick, which were opened for the admission of vessels of the United States, by an act of Par liament of June 24, 1822, having in January last, sudden The recommendation of the inemorialists now is, that the discriminating duties still imposed on British vessels and merchandise from those colonies, should be imme-ly, and without notice, been closed against vessels of the diately abolished, and that British vessels, coming from whencesoever they may, and with whatsoever loaded, should be admitted into the ports of the United States on the same terms as the vessels and cargoes of the most favored nations. United States in mid-winter, and on an extremely haz ardous and inclement coast, under a construction of an act of Parliament of July, 1825, and which construction is now admitted, even by the British authorities themselves, to have been erroneous. The effect of which, the committee believe, would be, From all these views, which might be extended, and summarily, to yield to Great Britain all she could ask, from the committee having reason to believe, that an adwithout any equivalent accommodation being granted on justment of the commercial intercourse between the Unit her part: for, to admit British vessels, indiscriminately, ed States and the British Colonial possessions, forms one into the ports of the United States, with their cargoes, of the special and prominent objects which have been from whencesoever arriving, or of whatsoever composed, committed to the Minister of the United States at the on the same terms as our own vessels, or those of the most court of London; that a corresponding desire to arrange favored nations, which would be the same thing, while it on a satisfactory footing appears to exist on the part of she allows the admission of American vessels into her the British Government, and that the negotiations respect. ports only partially, for certain prescribed articles, and ing it are expected to come to a definite issue, before the those limited to the growth, produce, or manufacture, of next session of Congress; the committee, although fuly the United States, and to a manifest disadvantage when agreeing with the Memorialists in the wish to cultivate compared with the like and the principal articles which and extend the trade in question, which they trust maș she wants when from elsewhere imported into the colonial be done to the mutual advantage of the parties concerned ports, would operate as a surrender of the principle of in it, are still unanimously of opinion, that it is not expe equality, and a withdrawal, from the control of the Go-dient, at this time, to legislate on the subject; and, there vernment of the United States, of the means it possesses fore, ask to be discharged from the further consideration of leading to a better and more desirable, because more of the memorial. equal, state of intercourse between the two countries. From this view of the subject, and a cursory reference Which is respectfully submitted. 144 19th CONGRESS, 1st SESSION. travene that just rec sumed it would be th trade between them. While the British ( is understood, that it i of the discriminating partially opened its c a limited number of that it has a right to tions it pleases; and: of duty, the produce tuated, while it impos description from othe sibility to this reasoni question at issue betw one of abstract right, tering into a comme mote the mutual adva The foregoing pre which have been ad United States and Gr the British colonies, The recommendat the discriminating du and merchandise fro diately abolished, an whencesoever they should be admitted i the same terms as th vored nations. The effect of whic summarily, to yield without any equivale her part: for, to adi into the ports of the from whencesoever a on the same terms as favored nations, whic she allows the admis ports only partially, those limited to the the United States, ar compared with the 1 she wants when from ports, would operat equality, and a with vernment of the Uni of leading to a bett equal, state of interc From this view of 1 |